What is SaaS Quick Ratio?

SaaS Quick Ratio measures growth efficiency by dividing new and expansion MRR by churned and contraction MRR. A Quick Ratio of 4 means you add $4 in new revenue for every $1 lost. It tells you whether your growth is sustainable or if churn is eroding gains.

What is a good SaaS Quick Ratio?

A Quick Ratio above 4 is considered strong and indicates efficient, sustainable growth. Between 2-4 is moderate, growth is happening but churn is significant. Below 2 is a warning sign that churn may eventually overtake growth.

What is Net Revenue Retention and how does it differ from Quick Ratio?

Net Revenue Retention (NRR) measures the percentage of revenue retained from existing customers including expansion, contraction, and churn. An NRR above 100% means existing customers generate more revenue over time. Quick Ratio measures growth efficiency (new vs lost), while NRR measures the health of your existing customer base.

SaaS Quick Ratio Calculator

Measure your growth efficiency. See how your new and expansion revenue stacks up against churn and contraction.

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Expansion MRR ($)

Churned MRR ($)

Contraction MRR ($)

Growth Efficiency

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Top SaaS companies have Quick Ratio > 4. Best-in-class NRR is 120%+.

What is the SaaS Quick Ratio?

The SaaS Quick Ratio measures your company's growth efficiency by comparing revenue gained (new + expansion MRR) to revenue lost (churned + contraction MRR). A higher Quick Ratio means you're growing faster than you're losing, the hallmark of a healthy SaaS business.

Quick Ratio Formula

Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)

For example, if you add $5,000 in new MRR and $2,000 in expansion MRR, but lose $1,500 to churn and $500 to downgrades, your Quick Ratio is 3.5, meaning you gain $3.50 for every $1 lost.

What's a Good Quick Ratio?

A Quick Ratio above 4 is considered excellent and typical of best-in-class SaaS companies. A ratio between 2 and 4 indicates healthy growth. Below 1 means you're losing revenue faster than you're gaining it, a critical warning sign. Use our Churn Rate Calculator to understand how your churn rate impacts this ratio.

Net Revenue Retention Explained

Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing customers, including expansion and contraction. An NRR above 100% means your existing customers are generating more revenue over time, even without acquiring new ones. The best SaaS companies achieve 120%+ NRR.

To see the dollar impact of improving retention, try our Revenue Recovery Calculator.

Learn More

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Quick ratio tells you growth efficiency. Churn analysis tells you how to improve it.

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